TLDR:
- Crypto VC investments increased by 38% in the first quarter of 2024, breaking a two-year downtrend trend.
- VCs invested nearly $2 billion in crypto projects, representing a 38% increase from the previous quarter, with 250 projects receiving investments.
According to a survey by Crypto Koryo, key elements of the article include:
Crypto venture capital (VC) investments increased in Q1 of 2024, with VCs investing nearly $2 billion in crypto projects, a 38% increase from the previous quarter. The number of projects that received investments also rose by 49%. This growth is seen as a potential start of a new wave after a two-year downtrend following the peak investments in Q4 2021.
Some significant VC firms like a16z, OKX Ventures, and Multicoin Capital and Protocol Labs were the top three investors by amount invested. Certain products like the crypto exchange Hashkey, the restaking platform EigenLayer, the blockchain and encryption firm Zama, and the EVM-compatible blockchain Berachain also raised substantial amounts through fundraisers.
While Ethereum hosted the most VC-funded projects, Solana followed closely, with growth attributed to memecoin ICOs. Polygon and Bitcoin also hosted a significant number of VC-funded projects. Reports from Pitchbook indicated a slight recovery in VC funding starting from Q4 2023, following a decline from events like the crypto liquidity crisis of 2022 and FTX’s collapse.
